888 offers special dividend after strong performance

Online casino and online poker firm 888 reported a thirteen per cent increase in revenue and offered a one-off special dividend in what it described as an exceptional year.

Online casino and online poker firm 888 reported a thirteen per cent increase in revenue and offered a one-off special dividend in what it described as an exceptional year.

Revenue increased to $376m in the year ended December 31st 2012 from $331m the year before. Adjusted EBITDA for the period increased 20% to $67m.

B2C Revenue increased 16% to $330m while adjusted EBITDA margin increased to 17.8% from 16.8% the year before.

A final dividend of 4.5 cents per ordinary share per the group's payout ratio has been reinstated and due to strong performance the board has recommended an additional one-off dividend of 2.0 cents per share, bringing the total dividend per share for the year to 9.0 cents per share.

CEO Brian Mattingley commented: "2012 was an exceptional year for 888. The ongoing focus on our core strengths and the customer proposition, coupled with the very positive effects of our targeted marketing campaigns, has led to tremendous growth in player numbers and record results."

"Our performance in Spain and Italy indicates that we have a compelling offering marketed in such a way that we are able to build significant market share in newly regulating territories, something that places us in a very exciting position as the US market begins to open for business."

As at December 31st 2012, 888 had 13.1m Casino, Poker and Sport real money registered customer accounts, representing an increase of 23% from the same time a year earlier.

888 said it had made significant market share built in Spain following award of Spanish eGaming Licence in June 2012.

In January it extended its relationship with Caesars to power a number of their poker brands including the "WSOP" into the US, once regulated. Other strategic agreements include one with Facebook to launch real-money products and WMS in the US.

The group said current trading has continued to be strong in the new fiscal year across all key performance indicators including new customer recruitment, deposits and bets.

Average daily revenue during the quarter until March 9th was up 8% from the same period last year, led by Casino and Poker. Bingo trading conditions continue to be challenging as are the current currency headwinds.

Mattingley added: "Led by the long-awaited re-opening of the US market, from which we are uniquely well placed to benefit, 2013 is a year of significant opportunity and we have got the right deals in place, both B2B and B2C, to gain a substantial foothold in the US."

"Growth in mobile gaming is also changing the industry, and our efforts in 2012 have allowed us to take advantage of the new ways in which people wish to play. We expect to see further growth in this area in 2013 and thus we remain confident in the outlook for 2013 and beyond."

CJ

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

How the stamp duty holiday is pushing up house prices
Stamp duty

How the stamp duty holiday is pushing up house prices

Stamp duty is an awful tax and should be replaced by something better. But its temporary removal is driving up house prices, says Merryn Somerset Webb…
25 Sep 2020
The electric-car bubble could get an awful lot bigger from here
Renewables

The electric-car bubble could get an awful lot bigger from here

The switch to electric cars is driving a huge investment bubble. But that’s not necessarily a bad thing, says John Stepek. Fortunes will be made and l…
24 Sep 2020
Can Rishi Sunak’s winter plan save the UK economy?
UK Economy

Can Rishi Sunak’s winter plan save the UK economy?

With his Winter Economic Plan, chancellor Rishi Sunak is hoping to support the economy through the dark months ahead as restrictions tighten again. Jo…
25 Sep 2020